Since I had bought my radio 2 years ago, I hoped that someday, I'd be able to play videos on the damn thing and now that that day has arrived, I've been having a bitch of a time finding the right settings that would play back...after much experimentation, I thought I'd share my findings and (hopefully) get a couple of suggestions for a better encode...
So if you want movies for your device, grab your movie files and run them through Handbrake (free for both Mac and PC) and select the "iPhone Legacy" preset...this preset sets the resolution to the very same native res of our device (480 x 272) and maintain aspect ratio should already be checked.
Tab over to "Video" and select MPEG-4 as the video codec and set the average bitrate to 500...go then to the audio settings and set the mixdown to stereo and the sample rate to 48 and the bitrate to 128. Hit start at the top and when done you should have a playable file in TCPMP.
It would be nice to be able to do it in H264 but everytime I've tried that, it runs as a pixelated mess and will frequently drop frames but if you have a preset that works with 264, please share it as I'd like to try it.